Effects of the past two years' economic recession on City X have included a downturn in the restaurant industry. The local Chamber of Commerce reported a 25 percent decrease in average sales among restaurants during the first year of the recession. During the second year, however, despite a stagnant economy, the average sales returned to within 5 percent of prerecession levels.



Which of the following, if true, most helps to explain the change in restaurant sales between the first and second year of the recession?


Some restaurants did not suffer any decrease in sales.

Most of the restaurants in City X whose sales decreased by more than 20 percent went out of business during the first year of the recession.

Some restaurants started offering reduced prices in an effort to stimulate sales during the second year of the recession.

Between the first and second years of the recession, food prices went up in City X.

More residents of City X than average reported staying home for meals during the first year of the recession in an effort to save money.


from PR